share The direction of the market this week will be decided by the results of the general elections and the decision of the Reserve Bank of India on the interest rate. Analysts have expressed this opinion. However, it is believed that the exit polls are expecting a big victory for the BJP-led National Democratic Alliance (NDA) and strong GDP growth data may lead to a rise in the stock markets on Monday. The exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for the third consecutive time. Counting of votes will take place on June 4.
Santosh Meena, Head of Research, Swastika Investmart, said, “Now all eyes are on the most important development, the results of the Lok Sabha elections on Tuesday. Before that, market participants will react to the exit polls. Meena said, “The market is watching it with caution and there may be a surge in the market after the exit polls. However, if the results are contrary to this, some panic may be seen in the market.”
MPC results will come on 7 June
He said that apart from the election results, another important event for the market is the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India. The results of the MPC meeting will come on June 7. Meena said, “After the election results, everyone will keep an eye on the attitude of foreign investors. On the global front, the macroeconomic data of America and China will play an important role.” The May data of manufacturing and service PMI is also to come this week. VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services, said, “The exit poll results which are giving a clear lead to the NDA with about 360 seats may lead to a strong rally in the market on Monday.
GDP figures were better than expected
He said that after the market closed on Friday, the Gross Domestic Product (GDP) growth rate figures for the financial year 2023-24 were better than expected at 8.2 percent. This is also expected to give momentum to the market. Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services Limited, said, “Along with the exit poll, the market will also react to the GDP data on Monday.”
Uncertainty will go away with the results
A report by MK Research says that if the final results are also like the exit polls, uncertainty will be removed from the market. Last week, the BSE’s 30-share Sensex fell by 1,449 points or 1.92 percent. At the same time, the National Stock Exchange’s Nifty fell by 426.4 points or 1.85 percent. The Sensex reached an all-time high of 76,009.68 points on May 27. On the same day, the National Stock Exchange’s Nifty also reached its all-time high of 23,110.80 points.
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